Nomura Securities Upgrades France Telecom (FTE) to Buy; Preferred Europe Incumbent

Nomura Securities upgraded France Telecom (NYSE: FTE) from Reduce to Buy with a price target of EUR12.50.

Analyst, Fredrick Boulan, said, "Double upgrade from Reduce to Buy; risks priced in. Guidance, dividend and earnings risks are better priced in. Shares now discount overly bearish scenario in mobile, while positioning in the stock could not be more bearish. With the full market cap to be recreated in only six years, we see significant potential upside and upgrade the shares to Buy from Reduce, with 40% total upside to our EUR 12.5 target price. FT is our preferred continental Europe incumbent. Competition risk remains, but we believe the valuation is one of the most attractive and should normalize as earnings pressure recedes."

For an analyst ratings summary and ratings history on France Telecom click here. For more ratings news on France Telecom click here.

Shares of France Telecom closed at $13.26 yesterday.

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